THINGS TO KNOW ABOUT

MANAGEMENT
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 Hotel Revenue
Management

What is hotel
revenue
management,
really?

From the pricing point of view, it entails

identifying and applying the optimal
rate to ensure that demand meets
supply at the right time, for each room
type, for each channel and for each
day of the year.
 Bottom
Rate

The bottom rate is the minimum sales

rate, which can be strategically
applied during low demand days
with the aim of boosting the
materialization rate and initiating
How to calculate commercial processes (having more
the minimum
people know about the hotel),
reputation (improving the
sales rate for
quality/price ratio and therefore the
your property? global online score) and cross-selling
(through the sale of ancillary
services).

The bottom rate should be

calculated by analyzing variable
room costs (costs incurred only if the
room is occupied) and the historical
data used as reference. The goal is to
sell those rooms that remained empty
the previous year to achieve a higher
profit this year. A room sold even at
just 1€ above the variable room cost
is always better than an empty room.
 Historical
Data

What variables
should be
This historical data must be reliable
considered when and include a segmentation of
setting rates? occupancy and average daily rate on
a day-to-day basis by market type
(groups, individuals, OTA, walk in, etc.)
and room (double, triple, suite, etc.).
 Starting
Price

How to calculate The choice of this rate is based on an

the starting analysis of the historical data cross-
prices for your checked with forecast data, market
trends and upcoming events. The
property?
higher the number of unsold rooms on
a specific date of the previous year,
the lower the starting price for the
same date of the current year.

With a correct starting price there is a

60% likelihood of achieving a
successful performance.
 Forecasting

Why is the
revenue manager
such an important
The work of a revenue manager is
figure?
all-important: his/her forecasts, based on
previously archived historical data,
facilitate the projection of future results,
and help to quickly gain an
understanding of how many and which
steps need to be taken.

Through the cross-analysis of historical

and forecast data, the revenue
manager is able to dynamically update
starting prices and inventory, and
strategically implement the appropriate
decisions on distribution channels, offers,
sales conditions, etc.
 Revenue Management
Software

Why is it
important to have
analysis software
support?

Franco Grasso Revenue Team

uses a software designed and
developed entirely by its in-
house technical department,
Revolution Plus.

This tool provides revenue

managers with the best
possible results in terms of
occupancy, ADR (Average
daily rate) and REVPAR
(Revenue per available room).
 OTAs

The Internet is an
unlimited market,
However, without OTAs it is difficult for a
can anyone do hotel to be successful and generate
without it? profits: the Internet represents today a
potentially unlimited and highly
profitable market to which hotels can
turn!

And however high the commissions may

be, if fully exploited, OTAs with their
visibility (billboard effect) hugely benefit
direct channels as well (website, phone,
email, walk-in) thereby easing the
burden of commissions to be paid.
Therefore, online and offline are two
complementary worlds that can coexist
in a balanced and profitable way.
 Sales on
Static Channels

How far apart are

the static market
and the dynamic
market?
Upon analyzing the historical data of the
hotel, the revenue manager realizes how
many rooms should be allocated to each
channel and what rates should be applied in
order to achieve the best possible result.

Ideally, dynamic rates should be

implemented on each online and offline
channel, but if this is not possible, fixed and
static rates channels must always offer the
lowest rate to avoid inhibiting sales on
dynamic online channels.

Static offline channels should never have

guaranteed allotments, but only work on
request or on a free sale basis.
 Purchasing
Patterns

How has consumer

behavior changed
due to digital
technologies?

A better knowledge of the reasons

why a customer is buying a room at a
specific destination allows us to
anticipate customer management
issues and maximize revenue with
upselling and cross-selling techniques,
through experiential services sales.

Revenue management, in addition to

dealing with pricing dynamics, should
also take into account the purchasing
patterns of customers, anticipating
and influencing their choices.
 Brand
Reputation

Online reputation is one of the key

reasons that prompts a customer to
prefer one hotel over another.
Why is online
Also, online reputation significantly
reputation so affects the visibility and rates that a
important? hotel can offer, and thus the
effectiveness of revenue
management strategies.

The higher the brand reputation, the

higher the rates you can sell at, even
reaching on certain dates (during high
season or special events) unthinkable
levels, that only a proficient revenue
manager is able to identify.
About Us
FRANCOGRASSOREVENUETEAM.COM.

In 15+ years of revenue management

consulting and outsourcing, we've helped over
2000 properties worldwide increase their
revenues by an average of 20% per year.
They've remained profitable in 2020 despite
the pandemic. Our clients are in more than 20
countries (highlighted on the map below) and 5
continents.

If you’ve found this eBook helpful and you’d

like to know more about how the Franco
Grasso Revenue Team can help your hotel
business increase your profits, please keep
reading.

WE ARE A GLOBAL COMPANY

Our Process
FRANCOGRASSOREVENUETEAM.COM.

FGRT Revenue
Management Consulting
begins by analyzing the
current situation of the
hotel in details, creating
a strategy that
maximizes the sales of
each channel both
online and offline, thus
unveiling hidden
opportunities for profit.
Our Activities/1
FRANCOGRASSOREVENUETEAM.COM.

Start-up analysis

Identification of the RPI

(Revenue Penetration Index)

Diagnostics and strategy

development

Initial starting strategy, with

modification of pricing and
Sales Architecture

Interface with our Technological

platform RevolutionPlus
Our Activities/2
FRANCOGRASSOREVENUETEAM.COM.

Processing of a starting rate for

every day for the whole year
ahead

Daily monitoring of market and

price dynamics

Daily online distribution

Monthly Reports

Groups’ quotations
Our Activities/3
FRANCOGRASSOREVENUETEAM.COM.

Research and daily achievement of

the dynamic balance between the
various sales channels

Study of performance indexes

Customer service 24/7/365

Handling all Revenue management

tasks on a daily, weekly and
monthly basis

Daily relationship between the in-

house staff/management and our
dedicated revenue manager
 THE DATA-DRIVEN
SOFTWARE THAT
HELPS YOU
MAKE THE BEST
POSSIBLE DECISION
Revolution +
FRANCOGRASSOREVENUETEAM.COM.

It’s a quick, effective, user-friendly system that

allows you to sort and read only the data you
need to make the right decisions, thanks to
advanced algorithms which highlight demand
trends and evolution.

It lets you react quickly to market demands and

change your rates at short notice

REVOLUTION+ IN ACTION: Analysis of pick-

ups
Revolution +
FRANCOGRASSOREVENUETEAM.COM.

Every hotel is a world apart with its own

reactivity that depends on many factors: this
system allows you to define the correct path to
be taken and to adapt your revenue
management strategy according to the
movements of an increasing dynamic and
unpredictable market.

Our Revenue Management Support System is

on cloud, and can integrate with most of PMS,
automatically or manually.

REVOLUTION+ IN ACTION: Analysis of pick-

ups
 Revolution + Main Tools
FRANCOGRASSOREVENUETEAM.COM.

§ Calendar Management
§ Historical data and advanced forecast
§ ADR, RevPar, Occupancy analysis on a
daily/monthly and annual basis
§ Revenue alerts
§ Data macro analysis
§ Occupancy trend charts and prices
 Revolution + Main Tools
FRANCOGRASSOREVENUETEAM.COM.

§ Segmented booking window

§ Daily analysis of the Room Nights and Annual
Revenue for the current activity and the previous
year
§ Total room nights and ADR by room type and
market segments
§ Pick-Up by room type and market segments
§ Year-by-year daily comparison regarding selling
channel and room types
§ Year-on-year analysis of dates of holidays and
special events
§ Possibility to compare current year
with pre-covid years
Revolution +
FRANCOGRASSOREVENUETEAM.COM.

Not to be at the mercy of Weather

Sell better by knowing the next Weather
conditions and comparing it with the past
Revolution +
FRANCOGRASSOREVENUETEAM.COM.
 Our Offer is based on 3 assumptions
FRANCOGRASSOREVENUETEAM.COM.

§ INCREASE
We are convinced of your growth. This is why
a large part of our remuneration is calculated
as a percentage on the increase in sales.
Our agreements will always be shared,
personalized, ethical and sustainable based
on the needs of your hotel.

§ CONSISTENT PRESENCE
You can contact the dedicated Revenue
Manager at any time by telephone or e-mail.
As if they were in the office next door. 365
days a year, a prompt and competent
response to any of your requests in daily
business.

SHARING THE KNOW-HOW

During the consultancy you will discover and
put into practice the techniques your dedicated
Revenue Manager implements in your hotel in
order to achieve the best possible results.
We share our expertise to let you walk on
your own when you’re ready.
 Operational consultancy +
RMS
FRANCOGRASSOREVENUETEAM.COM.

§ Save time, costs and energies, we take care of all the

aspects related to online daily distribution
(elaboration of commercial strategy, room type
architecture, rate plans, daily price adjustments,
inventory updates, descriptions, promotions, sales
and cancellation policies, control over rate parity,
selection of most profitable channels, communication
with otas account managers etc.)

§ No entry fee

§ No monthly or annual fixed costs at all

§ You can start for free, with a trial period of up to

three months

§ Then, you can continue with a win-win and risk-free

model based on performances and proportional to
the earned revenue
 Operational consultancy +
RMS
FRANCOGRASSOREVENUETEAM.COM.

§ In fact, we charge only 10% on the monthly

incremental online (otas+website) or total revenue (you
decide!) compared to same month of 2019. You will
pay us only if we help you make more revenue than
pre-covid times

Eg:October 2019 online revenue = 50.000$

October 2021 online revenue = 55.000$
Our fees: 10% out of (55.000$ -50.000$) = 500 $
Your incremental revenue: 90% out of (55.000$ -
50.000$) = 4.500$

§ As an additional bonus you can have a channel

manager and a booking engine (if you don’t use them
already) FOR FREE, and a PMS (if you don’t use it
already) at very affordable prices

§ Flexible exit conditions: you can terminate anytime

without any penalty in case you’re not happy.
Simple as that! No strings attached!
• We have offices in Italy, Spain, Belgium, Russia, Sri Lanka,
Thailand, Argentina.

• We speak Italian, English, French, Spanish, German,

Russian.

• We operate on a 24/7/365 basis, including holidays.

• And if you want some references, feel free to ask.

• We can put you in touch with our clients all over the world.

(click here for a free consultation and demo)

F R A N C O G R A S S O R E V E N U E T E A M . C O M.